SMC net income jumps 18% to P6.17B in 9 mos

Southeast Asia’s largest food and beverage conglomerate San Miguel Corp. (SMC) reported an 18-percent growth in net profit during the first nine months this year to P6.17 billion on the back of higher revenue contributions from its overseas operations.

Consolidated revenues rose 14 percent to P183 billion while consolidated operating income grew 25 percent to P14.7 billion as cost-savings programs across the entire organization helped offset high costs, the company said in a statement.

SMC said its international beer operations grew nine percent due to robust exports and strong volumes in Greater China – a 14 percent growth in the North and a nine percent improvement in the South. Total international beer sales revenues amounted to $217.9 million, five percent higher than a year ago.

The company’s domestic beer division, on the other hand, registered revenues of P29.1 billion or relatively the same level as last year. Operating income, however, increased 13 percent to P6.54 billion.

Ginebra San Miguel Inc. (GSMI), the hard liquor subsidiary of SMC, chalked in higher revenues of P9.28 billion in the first nine months of the year due to the impressive growth in its range of new products, particularly brandy and GSM Blue, and a recovery in gin volumes. Its operating income reached P798 million.

The San Miguel Food Group, on the other hand, registered consolidated revenues of P46.1 billion or five percent higher than the previous level due to sustained volume growth and better prices across most of its businesses. Operating income amounted to P1.53 billion.

Australian subsidiaries National Foods Ltd. and Berri generated combined sales revenue of A$ 1.34 billion and operating income of A$103 million, both higher by six percent than a year ago.

SMC has put off acquisitions this year to allow it to focus on further building existing businesses here and abroad.

The company is strengthening its non-alcoholic business in the Asian region with two plants on stream in Indonesia and Thailand and another two in South China and Vietnam.

SMC is expected to post a 30 percent growth in its revenues this year. In 2005, the conglomerate’s consolidated revenues amounted to P227 billion.

SMC, owned 20 percent by Japan’s Kirin Brewery Corp., has previously relied on loans from banks to fund its operations and investment.

It has been expanding its presence in the Asia Pacific region after dominating its home market for beer, soft drinks, dairy, poultry and processed food.